Sir Royalty Income Fund T.SRV.UN

Keg vs Sir

[BlueJay2020]

Is it an accident that distributions have been set at 84 cents, the exact same as the Keg? 

For the Keg, that equates to a yield of circa 5.55%. For Sir, it is 10.6%.  While the Keg is perhaps a premium brand, that massive difference is not justified. 

Meanwhile Pizza Pizza offers a yield of circa 6 per cent on 66 cents, and Boston Pizza circa 5.5 percent on 78 cents. 

As Flamingogold says, it gets better because the expectation is that this distribution level will rise over time.  I think a buck a unit is quite achievable and covered by sales levels in the quarter right before the pandemic.

[flamingogold]

With fewer locations and market reach than it's competitors, SIR has always received a premium yield by the market. It is possible that this current discrpancy in yield may seem exceptional now but could be shrunk with the market pricing the shares higher.

[Wordless1]

BPF is paying 6.5 cents a month right now... Wait for them to increase distribution next month. Ontario dining rooms reopenned today. Can't compare Keg to Sir Corp... Sir Corp is a fiancial disater - Compare the 2 balance sheets and you will see. SRV should trade at a discount just becasue of that.  Dosn't mean the discount has to be this big though...

[BlueJay2020]

That was exactly my point.

[Robsopinion]

SIR, certainly isn't in the best financial shape. It looks like Fowler was (personally) spending his profits as they came in during the good times and didn't leave much in the tank in case of a rough patch. That being said, although my personal opinion of him has diminished greatly with his actions this year, he is a seasoned restaurant veteran. He has survived recessions and downturns in